December 2016 - Getting Serious About Diversity

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TH E M R EP O RT
| 25
FEATURE
M // What will be the focus of
your work for policy develop-
ment for the GSEs in 2017?
THOMPSON //
We've spent the
past several years focused on
Fannie's and Freddie's response to
the housing crisis. These efforts
included initiatives that supported
home retention, availability
of mortgage credit, and also
strengthening some of their risk
management practices. Next year,
you'll start to see our work pivot
toward post-crisis opportunities,
especially after offerings like
HAMP and HARP come to an
end. We'll likely announce more
details on a high LTV refinance
option as a kind of a quasi-
replacement for HARP and a
post-crisis modification to address
life after HAMP.
We're going to probably com
-
plete some of the work that's been
on the scorecard for Fannie and
Freddie for the past few years
around alternate credit scores. We
know that many institutions are
starting to use or leverage technol-
ogy in the mortgage process, and,
as a byproduct, the enterprises
can continue to think about how
to best leverage technology in
their business practices. We're
going to continue to work on the
affordable housing needs of bor-
rowers like millennials, seniors,
retirees, workforce, and multi-
generational households.
We're going to continue to
promote liquidity in the hous-
ing market, as that is one of our
statutory responsibilities. Along
those lines, our primary focus is
making sure that we have respon-
sible access to credit by borrowers
from all segments of the market.
M // What steps are involved in
the process of changing existing
policy or adopting new ones?
THOMPSON //
Our first step
when someone proposes to
change a policy or procedure or
adopt a new one is figuring out
what the problem we are trying
to solve is. Once we have ad-
equately defined the problem, we
establish a project plan. A project
plan includes a charter, a scope,
and timetables.
Then we start collecting evidence,
including any data that is available.
We conduct stakeholder outreach,
which I can't emphasize enough—is
crucial to solving any issue. We
want to make sure we get ample
feedback so that we understand
the impact that this proposed
policy change would have on all
the stakeholders. The last thing we
want to do is create a policy that
has unintended consequences.
Once we get all that input, we
analyze the evidence and figure out
some policy options. Often, there is
just not a single solution to a partic
-
ular issue. We weigh the pros and
cons of different options and their
impact on a range of stakeholders.
Then we propose options and a
recommendation that we socialize.
I think we really go out of our way
to develop a deep understanding
of an issue in order to provide the
agency's director with a thoughtful
analysis that will help him make
the final policy choice.
The mortgage and housing
markets touch borrowers, inves
-
tors, lenders, sellers, and servicers.
There are so many participants in
the process that you have to do
thorough research and analysis on
any issue to really understand the
impact of any proposed solution
on all of the stakeholders.
In some cases, after policies are
put in place, we conduct after-
action reviews to see if those poli
-
cies have been applied in the way
that we thought that they should.
M // What challenges have you
faced as a minority woman
in the housing and financial
industry over the course of your
career?
THOMPSON //
I was the first
woman and first African American
to be head of the risk management
division at the FDIC, and when
I joined Goldman Sachs in 1986,
there weren't very many women
and there certainly weren't very
many minorities.
At the management level in the
private sector or in the federal
government, you walk into a
room and sometimes you're the
only female or you are the only
minority. You have to get over
that fairly quickly. It does register,
or it did when I first dealt with
it. Sometimes I would walk into
a meeting and I would be the
senior official there and most
people did not expect that.
M // How can women and
minorities work to overcome
similar challenges?
THOMPSON //
We need to take
more risks, and we need to get
out of our comfort zone. At times,
women and minorities don't speak
up in meetings, perhaps because
we feel like we have to have all
of the answers. That is just not
the case with non-minority men.
I read an article where it said
that women apply for promotions
and opportunities only if they
thought they met 100 percent of
the qualifications for that particu
-
lar job, and men applied when
they met less than 100 percent of
the qualifications. This isn't my
quote, but I find it to be my truth:
Under-qualified and under-pre
-
pared men don't think twice about
leaning in, and over-qualified and
over-prepared women will hold
back. I think that minorities and
women really only feel confident
when they're perfect or practically
perfect.
For example, we don't usually
answer questions unless we're
completely sure of our answers.
Sometimes we let our non-minority
or non-women colleagues take
risks and we don't. We take the
safe route. I've been in meetings
where one of two things has
happened: An issue came up and
I was thinking something and I
didn't say it, and the next thing you
know somebody else says what I
was thinking. Or the other thing
that happens is I said what I was
thinking and people acted like
they didn't hear it. Then another
colleague, a non-minority, non-
woman, said exactly what I said,
and it's like a new revelation and
the greatest idea ever. And I always
end up thinking, "Why didn't I say
what I had to say?"
M // Where do you think this need
among women and minorities to
be 'perfect' originates?
THOMPSON //
I don't know if
it goes to a fear of many non-
minorities thinking you're under-
qualified or you got the job not
because of your qualifications but
because of some sort of, I hate to
use the term, "affirmative action,"
but there's some notion in there
that really goes to the heart of our
confidence that we need to get
over. The competence is there, but
I think the confidence is an area
that we really need to focus on.
My mentors at Goldman Sachs,
Neil Levin and Howard Altarescu,
and also John Bovenzi at the
FDIC, really helped change my
thinking. They taught me how to
dismiss the mental noise and key
in on the issues at hand. I learned
to highlight the facts, understand
and communicate the evidence so
I could stay focused and deliver a
databased presentation. They said
that the rest would fall into place,
and people would learn to rely on
me and seek me out to work on
projects.
They said, "It's important to
remember that the worst thing
that could happen is you're
wrong." You don't want to be
wrong too many times, but you
need to start somewhere and take
some gradual steps.
M // What advice do you have
for women who are just starting
in the industry who are trying to
break in?
THOMPSON //
Take chances and
be open. If you're in an organiza-
tion, I always recommend that
people go on detailed assignments.
You can get locked into a particu-
lar office or a particular division's
way of thinking. Broaden your
perspective and understand the
entire organization to the best of
your ability. Understand where
you fit in with your organiza-
tion, and try to make yourself
invaluable. Do something new;
do something different. You might
not like it, but at least you've
tried it. and you can make an
informed decision when you're
making your career choices. These
are the types of things that build
confidence and credibility. I say,
just go for it.